Financial Statement Analysis
This assignment involves analysing the financial statements and other information relating to a number of Australian public companies. These companies are listed below.
Listed Company Name
- Corporate Travel
- Management Ltd
- Flight Centre Travel GroupLtd
- Helloworld Travel Ltd
- Qantas Airways Ltd
- Virgin Australia HoldingsLtd
- Webjet Ltd
Please note: it is a group assignment L so prior to submission L it is the responsibility of every member of the team to confirm that they agree with the answers provided by the team in relation to all companies. This provides an opportunity for all team members to help each other develop some analytical and interpretative skills.
FACT SET
Go to the website for your allocated company and obtain the Income Statement and Balance Sheet for the company for the 2014/15 (Year 1) and 2016/17 (year 3) financial years. You will find this information in the relevant Annual Reports. I have provided links to some of these Reports.
TASKS
1. Based on the information contained in these statements calculate for each company for the relevant financial years. You must show the formula used and your calculations.
a. The Net Profit MarginO
b. Current RatioO
c. Capitalization ratioO
d. Asset Turnover RatioO
e. Leverage RatioO
f. Return on EquityO
g. Return on Total AssetsO
h. Earnings per share (EPS)O
i. Net Debt to Equity RatioO and
j. Total Return to Shareholders.
2. Demonstrate and explain what would happen to the 2017 Return on Equity and the Net Debt to Equity Ratios if your allocated company just prior to the end of the 2017 financial year raised an additional $50 million loan from the bank, which it invested entirely in new plant and equipment. Assume that the immediate effect on sales and net profit was zero.
3. Using the ratios calculated in Task 1 of this case study, compare and contrast the financial performance of the companies over the period of your analysis. [Provide a single agreed answer per team.]
4. Use your analysis of the financial performance of the companies over the past 3 years to explain any differences in the Total Return to Shareholder between the companies over the past 3 years. [Provide a single agreed answer per team.]
5. Compare and contrast the current market value of each company. Use the ratios you have collected, other information from the media to provide observations about the value of these companies (i.e. cheap or expensive?) [Provide a single agreed answer per team.]
Attachment:- Template.rar